Bill Text: MI HB5275 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Insurance; insurers; disclosure of security breach in annual statement to director; require. Amends sec. 438 of 1956 PA 218 (MCL 500.438).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-02-22 - Referred To Second Reading [HB5275 Detail]
Download: Michigan-2017-HB5275-Introduced.html
HOUSE BILL No. 5275
November 28, 2017, Introduced by Reps. Cochran, Moss, Rabhi, Faris, Sowerby, Chang, Hoadley, Lasinski, Greig, Chirkun, Zemke, Wittenberg and Pagan and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 438 (MCL 500.438), as amended by 2016 PA 558.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 438. (1) An insurer, foreign, alien, U.S. branch, or
domestic, transacting business within this state, shall annually,
on or before March 1, prepare under oath and deposit with the
director a statement concerning its affairs in a form and manner as
prescribed by the director. The annual statement must be filed on
or before March 1 of the year following that covered by the
statement. On request and for good cause shown, the director may
grant to a company reasonable extensions of the March 1 filing date
for periods not to exceed 30 days. The annual statement must
include a disclosure of any security breach that requires notice to
a resident in this state under section 12 of the identity theft
protection act, 2004 PA 452, MCL 445.72. As used in this
subsection, "security breach" means that term as defined in section
3 of the identity theft protection act, 2004 PA 452, MCL 445.63.
(2) The director shall prescribe the format and content of
statements that are suitable and adaptable to each kind of insurer
authorized by this act. The director shall include requests for
information on important elements of an insurer's business,
including any matter, condition, or requirement regulated by this
act. An annual statement filed by an insurer under this section
must be prepared in accordance with instructions provided by, and
accounting practices and procedures designated by, the director.
(3) The director may address inquiries to an insurer, in
relation to the insurer's activities or conditions, or any matter
connected with the insurer's transactions. The insurer shall
promptly reply in writing to each inquiry described in this
subsection.
(4) A report filed with the director under this section must
be made available to the public in compliance with the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246.
(5) An authorized insurer that does not make or deposit the
annual statement required by this section, or does not reply within
30 days to an inquiry of the director, is subject to a civil
penalty of not less than $1,000.00 or more than $5,000.00, and an
additional $50.00 for every day that the insurer does not make and
deposit the annual statement or reply to the inquiry. In addition,
an insurer that does not make and deposit an annual statement, or
does not make a satisfactory reply to an inquiry of the director,
concerning the insurer's affairs is subject to proceedings under
section 436.
(6) The annual statement of an alien insurer must relate only
to the insurer's assets, transactions, and affairs in the United
States unless the director requires otherwise.
(7) As used in this section, "U.S. branch" means that term as
defined in section 431.
